Euro at Six-Week Low vs. Dollar

The euro slumped during this week, falling to the lowest level in six weeks against the US dollar, as Greece and its debt returned to the forefront of news and discussions, making speculators unwilling to invest in the shared European currency.
The theme of the Greek debt is again in newswires, worsening market sentiment and making investors stick to safer currencies, and the euro suffered because of it. The currency attempted to slow its drop on Tuesday and Thursday on anticipation of an interest rates hike by Europe’s central bank in June and as the reports showed that major economies of the European Union, including Germany and France, perform quite well. But all good signs weren’t been able to mute talks about the impact of the debt crisis in Greece and other indebted European nations on the economy of the EU, so the euro continued its one-way movement to the downside.
The EU official will meet next week to discuss the issue with Greece. The nation will attempt to convince the policy makers to reconsider the terms of the bailout and to extend its credit maturities. The problem is that Greece has to show commitment to fix its economical imbalances to impress other EU members, but so far the indebted nation hasn’t showed willingness to do so.
EUR/USD slumped from 1.4361 to 1.4116 over the week after it reached the high of 1.4440. EUR/JPY fell from 115.80 to 114.04 and EUR/GBP dropped from 0.8765 to 0.8715.

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